Cadence subsidiary in Brazil secures operating licence for iron-ore process plant
Aim-listed mining investor Cadence Minerals' indirect subsidiary in Brazil, Dev Mineração, has secured an operating licence for the Azteca processing plant at the Amapá iron-ore project.
Having received the go-ahead for the plant from the Amapá State Environmental Secretariat, Dev Mineração has fulfilled conditions for a $1.15-million working capital tranche under a prepayment offtake facility, which will allow for full-rate operations. For now, the company has started production at reduced rates.
Heavy mobile equipment and operating personnel contracts are expected to be finalised in the coming days, while haulage and port handling contracts are at an advanced stage and will be concluded as the Azteca operations ramp up.
Dev Mineração aims to have a first shipment of about 45 000 wet tonnes ready by the end of the year.
The Azteca plant operating licence is valid for five years and is renewable on application. Notably, Dev Mineração's installation licence for the Amapá iron-ore mine, processing plant and tailings facility for the larger project remains in force alongside the Azteca licence.
Azteca is poised to produce 380 000 t/y of 65% iron concentrate.
"The installation licence allows us to rebuild the plant. The operating licence allows us to run it and sell what it produces," says Cadence CEO Kiran Morzaria, confirming that full mobilisation of the Azteca plant following release of the working capital funds will take about two weeks.
The larger Amapá redevelopment strategy remains subject to further technical studies, financing, construction planning and regulatory approvals.
Cadence Minerals holds a 36.2% interest in Pedra Branca Alliance, which owns 100% of Dev Mineração.
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